Highlight: "Markets in Review" Issue #10

Argentina's Inflation Battle: Milei Sparks Hope

Argentina, the country with perhaps the most complicated and volatile relationship with inflation, could potentially be turning things around. 

In the early 20th century, with significant agricultural exports and a currency backed by the gold standard, Argentina was one of the wealthiest countries in the world with an equally strong currency. However, as time changed and history progressed, the country began experiencing political and inflationary pressures.

Since then, Argentina has yet to be successful in reversing the trend. At one point, a new currency named “Austral” was created, which initially showed promise. However, just five years after its introduction, inflation soared to a staggering 20,262.80% in 1990.

Today, the enigmatic president of Argentina, Javier Milei based his campaign on solving this issue that has plagued Argentina for the last 80 years. When he was first elected in December of 2023, his work was cut out for him. With child poverty on track to reach 70%, the highest monthly inflation rate since the ’90s, and growing unrest, the people demanded change.

As a result, Javier Milei decided to cut state spending and corporate subsidies, and so far, it seems like he could be on the right track with monthly inflation decreasing from its high of 25.5% to 13.2% this past month.

Will Javier Milei be Argentina’s saviour or another misstep in this country’s seemingly endless battle against inflation?

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